Bonuses for network rail bosses

Network RailFour top Network Rail (NR) bosses have been awarded bonuses totalling more than £600,000.

The long-term incentive plan payments, including £168,000 to finance director Patrick Butcher, come at a time when rail regulators have been critical of NR's performance on the railways.
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Under the plan, network operations managing director Robin Gisby and infrastructure projects managing director Simon Kirby both get £158,400, while group strategy director Paul Plummer picks up £148,400.

The payments, reflecting the company's performance in the period 2009-12, could have been higher but NR said 20% had been cut "to take account of specific safety and train performance issues".

NR also said that the payments would be phased, with 60% paid now and the balance to be reviewed at the end of the 2013/14 financial year. The company added that the award had been delayed by a year.

The Office of Rail Regulation (ORR) has repeatedly expressed dissatisfaction with NR's performance, particularly on long-distance routes.

Of late there have been a series of overhead line problems that have caused serious delays on some busy routes, including the East Coast main line where trains-on-time figures have fallen.

NR said that under the terms of the 2009 long-term incentive plan (LTIP), the four directors had qualified for a 100% payout. However, the company's remuneration committee had decided to reduce the award by 20%.

Of this figure, 10% reflected "workforce safety, level crossing safety and enforcement notices over the period" while the other 10% took into account the fact that train performance targets were not met.

NR pointed out that during the period 2009-12 it had the cut the cost of running the railway by £1.6 billion and achieved £526 million in incremental savings above the ORR's original target.

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Bonuses for network rail bosses

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